The Effects of Global Financial Crisis on Financial Institutions and Level of Preparedness - Dissertation Example

? Proposal On The Effects of Global Financial Crisis on Financial s and Level of Preparedness March Table of Contents Data CollectionMethods 6 Methods of Analysis 7 Ethical Considerations 8 Introduction According to many researchers, financial crisis is not far off. It is likelihood in the future and its effects/impact will depend on the level of preparedness of governments and institutions. The level of preparedness will be guided by the kid of information an institution has or is available. To this end, the level of preparedness and the impacts of the various strategies/policies in use is not available. Assembling information to aid in assessing the effectiveness and impacts of the cushioning mechanisms is critical. Problem Statement The global financial crisis has had many negative impacts on many financial institutions. According to, the crisis has led to isolation causing poverty and making many others to slip further in the poverty map. The availability of factual data on the effects /impacts of the global financial crisis as well the strategies which have been employed by many institutions to cushion their capital stocks from further eroding is very critical. Such information will assist in the formulation of tangible strategies to ensure sustainable development and in the development of intermediate means preventing future occurrences. Lack of information on how to deal with future crisis and emergency situations is often one of the worries of institution and especially those that are using same operation practices (Marczyk, G.R (2005). Such information is always available online but its applicability depends on the locality, business environment and management. As Arnold and Myers (2005) puts it, information is available but using it with success is the harder part. In terms of future preparedness, various interventions have been proposed and implemented in some countries and by some institutions. However, there is no information on whether they have been successful in cushioning the said countries/institutions fully. Information on their effectiveness will form a strong basis as well as providing a strong foundation for replication. This as Creswell (2006) puts it, will be aimed at cushioning the whole world from slipping back to poverty and under-development. The proposed study will aim at assembling information through the assessment of the full extent of the global financial crisis effects putting more on goodwill, inventories and depreciation stocks in some listed companies which have harmonized their accounting procedures and which are listed. Further, the assembled information will aim at assessing the level of preparedness of the sampled companies and determining the effectiveness and adequacy of the proposed cushioning mechanisms. Evolution of other strategies will be of importance. . Aims and Objectives This research study will employ the use of 100 listed companies which have harmonized their accounting procedures and which are listed. It has been said that information is power. If actual, an organization can use it to influence the decision to be made, justify an action and explain a decision made. With this is mind, the researcher will aim at assembling data aimed at; Assessing the full extent of the global financial crisis effects with respect to goodwill, inventories and depreciation of some listed companies which have harmonized their accounting procedures and which are listed; Assessing the level of preparedness of the sampled companies in addition to determining whether the said cushioning mechanisms are effective and their level of evolution and involvement; and Establishing the impacts of the cushioning mechanisms in the sampled companies which will be critical. Economic policies and other accounting practices which are changing over time need to be evaluated consistently and will form an integral part of the research. Rationale/Justification Gaps exist in terms of global financial preparedness literature concerning listed companies. Availability of such literature is critical and is strategic importance in the formulation and in the development of projects/programmes which can propel a country/institution a notch higher economically. If sustainable development is to be realized as envisaged by the World Bank, then tangible policies for development should be developed. Such policies cannot be developed without factual basis, and if developed, their success is limited amounting to a waste of meager resources (Maxwell 1996). Literature Review Another global financial crisis is not far off. It is likelihood in the future and its effects/impact will depend on the level of preparedness of governments and institutions (Haskins et al. 1996). The level of preparedness will be guided by the kid of information an institution/country has or is availability. To this end, information on the level of preparedness and the impacts of the various strategies/policies in use is not available. Assembling information to aid in assessing the effectiveness and impacts of the cushioning mechanisms is critical as strategies/policies in future prevention will be developed/formulated using this factual information. According to Haskins et al. (1996), several accounting practices have been harmonized in several institutions in the world. This has been necessitated by the fact that there is need to measure and compare performance based on an agreed framework. Having complete financial information about a certain institution is very key if tangible decisions are to be made. The reliability and valid information is a dream of every institution. Getting comparable and reliable information is possible if generated using comparable parameters which is only possible if same practices are applicable. The two aspects of comparability and the need for factual information will drive the researcher is getting reliable and valid data to make this possible. Research Methodology The proposed research study will assess the 100 listed companies. The study will specifically investigate the sample companies in order to assess the full extent of the global financial crisis effects with respect to goodwill, inventories and depreciation of the companies which have harmonized their accounting procedures and which are listed. According to Melida et al. (2005), generazability of any research findings is among the objectives of a study as it ensures that the findings feed into the body of knowledge for future use and replication. To make this possible, the companies will be selected using stratified sampling since the listed companies have no same traits and do not operate under the same environment to warrant a simple random sampling. In this regard, listed companies dealing with same products and operating in environment thought to be the same will be a sampling unit. Several restrictions will be placed on the sample. First, it will critical to ensure that the selected companies are listed and have a certain trading stock threshold. Further, the companies will be required to be financial institutions. Further, it will be paramount that the data before analysis is tested for validity and reliability. Data Collection Methods The researcher will employ the use of both quantitative and qualitative data collection methods. Qualitative methods are use as they lead to the establishment of perceived relationships between the proposed variables ensuring that the researcher has no attachment to the data collected. Quantitative methods are useful as they help in eliminating bias in collection/analysis/interpretation which may arise. In this case, quantitative data collection methods will be used in this research since it seeks to assess the full extent of the global financial crisis effects with respect to goodwill, inventories and depreciation of some listed companies which have harmonized their accounting procedures and which are listed. Bothe primary and secondary data will be used for the study. Primary data will be collected using a questionnaire while the secondary data will be downloaded from the websites and from the listings. Both open ended and closed questions will be used. Methods of Analysis To gain a deeper understanding and assemble information through the assessment of the full extent of the global financial crisis effects putting more on goodwill, inventories and depreciation stocks in some listed companies which have harmonized their accounting procedures and which are listed, several analysis techniques will be used. First, C index will be used to assess level of harmonization of the strategies. Chi-square test will be used to determine the level of association and independence between the proposed strategies/policies. The harmony of the strategies/policies will be determined using the H index. Analysis of variance to establish the existing differences in the applicability of the strategies in preparation for replication will be done. This will further be amplified through the use multiple comparisons tests. Non-parametric tests will be the key consideration since it is assumed that the collected data will not be from any distribution. This fact will be determined by carrying out random tests and other normality test tests. Lastly, binomial tests will be used to establish equal representations which are key in ensuring replicability of the results in future studies and applications. The research will be performed using a significance level of 5%. The p-values will be used to determine the effectiveness of the formulated strategies/policies. The results will be presented using tables as they provide a bird’s eye view of the data and even non statisticians will be able to comprehend. Ethical Considerations Ethical considerations are norms which should be adhered to if the results are to be considered credible. As Curran and Perecman (2006) puts it, for any research work to gain the required standards, these considerations need to be taken seriously as their implications are also serious. In this case, the researcher will uphold the following; Handling the company data/information with utmost confidentiality and not sharing it. Only results common across groups will be made public; Ensure justice by treating all companies the same without discrimination; Making the participants aware of the benefits and the risks involved; and Maximizing the study benefits and minimizes the risks involved. In order to make this possible, the participants will be given more information about their participation and will be required to sign an informed consent form. At the end, the researcher will ensure an all inclusive debriefing meeting to briefly take the participants through the draft findings pending the final publishing of the research study report. Timescale   W1 W2 W3 W4 W5 W6 W7 Development of research tools               Piloting the instruments               Data Collection and Quality               Data Analysis               Report Writing               Report Dissemination               Budget S/No. Activity US $ 1 Development of research tools 7,500 2 Piloting the instruments 1,875 3 Data Collection and Quality 7,500 4 Data Analysis 4,375 5 Report Writing 8,750 6 Report Dissemination 9,375 Total 39,375 References Arnold, D.W. and Myers, J.L (2005). Research Design and Statistical Analysis. Lawrence Erlbaum Creswell, J.W (2006). Qualitative Inquiry and Research Design: Choosing among Five Approaches, 2nd edition. Sage Publications, Inc Curran, R.R and Perecman, E. (2006). A Handbook for Social Science Field Research: Essays & Bibliographic Sources on Research Design and Methods. Sage Publications, Inc Haskins, M. E et al. (1996). International Financial Reporting and Analysis. A Contextual Emphasis, Chicago, IL: Irwin Maxwell, J.A (1996).Qualitative Research Design: An Interactive Approach (Applied Social Research Methods). Sage Publications Marczyk, G.R (2005).Essentials of Research Design and Methodology (Essentials of Behavioural Science). Sage Melida, C. et al. (2005). Effect of Stimulant Medication on the Acceptance of Background Noise in Individuals with Attention Deficit Hyperactivity Disorder. Journal of the American Academy of Audiology, pp. 600-687 Read More